Stocks, Dollar Advance on Economy Outlook as Treasuries Decline
By Nikolaj Gammeltoft and David Merritt
Feb. 17 (Bloomberg) -- Stocks and the dollar rose as higher-than-estimated earnings and economic data signaled the global recovery is gaining momentum. Treasuries slid as Federal Reserve minutes showed policy makers debated selling assets.
The MSCI gauge of 23 developed nations stocks advanced 0.5 percent at 2:18 p.m. in New York. The Standard & Poors 500 Index rose 0.2 percent a day after the benchmark U.S. equity measure surged the most since November. The Dollar Index rallied as much as 1 percent to 80.528, weighing on oil and metal prices and shares of commodity producers. The yield on the 2-year Treasury note rose five basis points to 0.85 percent and the 10- year yield increased seven basis points to 3.73 percent.
Deere & Co. and Whole Foods Market Inc. rallied after reporting earnings that topped analyst estimates, joining the three-quarters of S&P 500 companies reporting higher-than- estimated results since Jan. 11. U.S. housing starts and industrial production increased more than economists projected in January, government data showed, adding to evidence growth is accelerating in the worlds largest economy.
The fundamentals are trending in the right direction, said Hank Smith, who helps oversee $6 billion as chief investment officer of Haverford Trust Co. in Radnor, Pennsylvania. The economic data continues to trend to the positive, corporate profits by and large exceeded expectations and some of the global uncertainty about sovereign debt has been taken away. We have an unprecedented worldwide recovery going on.
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